What is the probability that a randomly selected subprime mortgage in the state during November 2008 was not current? (Round you
1 answer:
Complete question is;
The attached chart shows the (approximate) total number of subprime home mortgages in a state in November 2008, broken down into four categories.
What is the probability that a randomly selected subprime mortgage in the state during November 2008 was not current? (Round your answer to two decimal places.)
Answer:
Probability that the one randomly selected was not current = 0.36
Step-by-step explanation:
From the attached image, we can see that the four mortgage categories are mutually exclusive. This means that none of the 4 status depends on any other.
From the image attached;
Total number of subprime mortgages = 196,280
Number of current mortgages = 126,330
Thus;
Probability of a randomly selected subprime mortgage being current = 126330/196280 = 0.64
Then;
Probability that the one randomly selected was not current = 1 - 0.64
Probability that the one randomly selected was not current = 0.36
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